Are you looking forward to building your own eCommerce store on Shopify? Well, then this article will be of great help to you.
Here, we will be discussing one of the most important aspects of running an eCommerce store, i.e., payment gateways.
Selecting the right payment gateway is a crucial decision for any business. Let’s begin by understanding what Shopify payment gateways are, how they work, and a list of the best Shopify payment methods.
What are Shopify Payment Gateways?
Shopify Payment Gateways are the payment solutions that allow your customers to make payments on Shopify whenever they purchase any product. These payment gateways ensure that you receive the transaction amount in a convenient and secure way.
This process starts when a customer initiates a transaction for buying a product on your Shopify store. Then the gateway further sends confidential information of the buyer to his/her bank that is being used to make the purchase. Next, the bank reverts to the gateway with a response of a successful or a failed payment.
How Does Shopify Payment Gateways Work?
Payment processing in Shopify works on a backend phenomenon called ‘Stripe Processing System’.
In this, all your payments are processed in real-time and reflected on Shopify’s dashboard itself. This allows you to look at the status of your payments on Shopify’s dashboard without logging into an external platform like Braintree or Authorize.net.
After checking the initiated payment for fraud, Shopify Payment provider deposits the payment into the seller’s account in a few working days, majorly depending on the country. For instance, in the US, the transfer takes about 2 days, whereas, in Sweden, it takes about 4 business days.
However, if the payment transfer takes longer than usual, we recommend you address and report the issue on time. This enables you to avoid payment delays or fraud.
Suggested Read: Best Payment Gateways in India For Secure Online Payments
What Makes an Ideal Shopify Payment Gateway?
The selection of a Shopify payment provider is a crucial decision for you to make, and you really don’t want to miss any important points. Make sure you add the below factors to your checklist while looking for a Shopify payment gateways method.
Your Type of Business: Before selecting the payment method for Shopify, decide on the terms of sales and in what currency you are willing to accept payments.
Accepted Cards: To make payment options easy for your customers, ensure that your Shopify payment provider accepts all the popular types of cards. Some popular options include VISA, RuPay, MasterCard, and American Express.
Target Market: While selecting a Shopify payment method, make sure to check their availability in the geographical area of your target market. For example, PayPal is not available in countries like Iran, Afghanistan, or Bangladesh.
Security: To keep yourself and your customers secure, choose a Shopify payment method that offers a secure transaction experience with robust fraud detection features.
User Shopping Experience: Smooth, secure, and seamless payments play an integral part in enhancing the shopping experience for your customers. A pleasant experience on your platform will ensure customer retention and repeat orders.
Transaction Cost: The cost per transaction or annual fees charged by a Shopify payment app is an important factor to consider while choosing one. On this basis, you will decide your selling price and profit margins. You must also consider settlement, chargeback, statement, cancellation, anticipation, and any annual fees.
15 Best Shopify Payment Gateways List of 2022
- Shopify Payments – Supports simple credit card processing
- Stripe – Supports online businesses with secure payment processing
- PayPal – Best for setting up a merchant account
- WorldPay – Ideal for merchant payment processing
- Amazon Pay – Makes checkout super-fast and secure
- Authorize.Net – Accepts payments globally
- Skrill – Online wallet for payment & money transfer
- Verifone – A simple & secure medium for Shopify payments
- Klarna – Ensures interest free payments
- Square – Online payment gateway with feature for free online store
- Braintree – Helps sellers reach more customers & increase conversion
- 2Checkout – Online payment processing anytime, anywhere
- Adyen – Helping businesses grow with faster & secure payments
- PayFast – Popular among South African Businesses
- PayGate – The most used payment gateway in South Africa
Let’s check few of the Shopify payment gateways available in India.
You can check out Shopify’s payment gateway– Shopify Payments available on its website directly. Shopify Payments allow you to set up a payment system within the Shopify store itself which is quite convenient for businesses to use.
Features of Shopify Payments
- Shopify Payments has the ‘no transaction fee’ rule in most countries.
- You can begin to accept payments instantly without going through any long process of third-party integration. Just simply turn the option in your Shopify account.
- This Shopify payment method enables convenient checkouts by accepting local currencies and popular payment methods.
- It supports 3D secured checkouts, PCI-compliant servers, and data encryption to keep your transactions safe.
- It allows you to track your payments and orders all in one place.
Pricing of Shopify Payments: Shopify Payments come with the Shopify Store.
Country Wise Popularity for Shopify Payments: China, United States, France, Australia.
Stripe Payment Gateway is a Shopify payment provider that is suitable for all types and sizes of businesses, starting from startups to huge enterprises. Stripe payment systems work on machine learning models that help businesses increase their revenue and conversions. Its continuously improving features ensure that your transactions are fraud-free.
Features of Stripe:
- This payment provider offers quick integration with REST API in just 10 minutes.
- This Shopify payment app accepts payments through all mediums like cards, wallets, bank transfers, buy now pay later, etc.
- Stripe offers real-time fraud insights with SAFE and TC40s fraud reporting and fraud prevention based on machine learning.
- It provides 24*7 phone, chat, and email support to its users.
- This payment gateway provides revenue recognition, financial reporting, and consolidated reports to simplify accounting for you.
Pricing of Stripe Payments: Stripe offers a pay-as-you-go policy. It charges 2% for Indian cards, and 3% for cards from outside India.
Country Wise Popularity for Stripe: Australia, Canada, India, Belgium
PayPal Payment Processor is one of the popular and trusted mediums for conducting global transactions. Using PayPal, you can deal in 100+ different currencies in 200+ markets across the globe.
To ensure customer loyalty, PayPal provides a hassle-free checkout experience with alternative payment methods that are also locally relevant.
Features of PayPal
- Increase your reach with the most trusted payment gateway brand with 400+ million active users across the globe.
- PayPal offers scalable tools as your business grows
- This gateway also assists you in creating an effective payment strategy for your business with its valuable insights.
- It keeps your online business transactions safe even in cross-border commerce.
Pricing of PayPal: PayPal charges different fees for commercial transactions in different countries. In India, it costs ₹3 INR per transaction.
Country Wise Popularity for PayPal: Germany, United Kingdom, USA
WorldPay payment gateway allows your business on Shopify to accept payments in more than 120 currencies. It simplifies order and accounts management with features like webhooks, order management, and real-time alerts.
Features of WorldPay
- On WorldPay’s live dashboard, you can see your orders and payments status in real-time.
- You can easily arrange your recurring payments in case of subscriptions.
- This payment gateway just takes a few minutes to integrate, and in less than 24 hours, the payment system will be live.
- Its risk management feature notifies you if any transaction is found suspicious.
Pricing of WorldPay: WorldPay payment provider offers two plans – Gateway Standard, and Gateway Advanced, priced at ₹1886.18 and ₹4467.26 per month, respectively.
Country Wise Popularity for WorldPay: United Kingdom, USA, Hong Kong, Singapore
Shopify is one of the premier partners for Amazon Pay. The Shopify payment provider, Amazon Pay is available in more than 170 countries and claims to process transactions 49% faster as compared to your regular checkouts.
Features of Amazon Pay
- It provides dedicated technical and accounts support to address all your queries and concerns.
- Its fast integration reduces your costs and development efforts with omnichannel APIs.
- This payment method makes it easy to process subscriptions, recurring payments, or future payments.
- The payment gateway also keeps a check on fraudulent transactions with its top-notch technology used for Amazon’s eCommerce platform.
Pricing of Amazon Pay: Amazon Pay charges 1.95% plus taxes as the processing fee.
Country Wise Popularity of Amazon Pay: USA, Japan, Spain, Germany
Authorize.Net, as a popular Shopify payment provider, allows you to accept payments anywhere, anytime. It focuses on simplifying transactions for both businesses and customers while enhancing your checkout experience.
This Shopify payment app enhances repetitive customers’ shopping experience with smooth processing of installment and recurring payments.
Features of Authorize.Net
- Authorize.Net can help you generate and send customized digital invoices through emails.
- The Shopify payment method provides award-winning 24*7 technical support with real human executives.
- With Customer Information Manager, customers no longer need to re-enter their information every time they make a purchase.
- Enables an easy checkout with a ‘Buy Now’ or ‘Donate Now’ button.
Pricing of Authorize.Net: Authorize.Net offers two plans, Payment Gateway Only and an All-in-One option. Payment Gateway Only charges a monthly fee of ₹1895.64, a per-transaction fee of ₹758.44, and a daily batch fee of ₹758.44. However, the All-in-One plan charges a monthly fee of ₹1895.64 and a per-transaction percentage of 2.9% along with ₹274.27.
Skrill, a Shopify payment provider, offers a multi-currency account that enables your business to do transactions in 40+ currencies. Skrill offers a PCI-compliant payment gateway that ensures high standards for risk and fraud management. In addition, Skrill’s world-class technical support reaches you in your preferred language, no matter wherever you are.
Features of Skrill Payment Method
- With one contract and one API, you can quickly add Skrill to your business’ checkout page and get started with your payment system.
- With Skrill, your customers can make frictionless repeated payments with just 1-Tap.
- It accepts and supports payments in all possible mediums like cards, digital wallets, and bank transfers within a network of 3000+ banks.
- Provides competitive transaction fees and rates.
Pricing of Skrill: For local and global payment transfers, Skrill charges a transaction fee of 2.50%.
Country Wise Popularity of Skrill: USA, Australia, Germany, Ireland
Formerly known as 2Chekout, Verifone accepts all major types of advanced payment methods for eCommerce. This Shopify payment provider has successfully made transactions of more than $440 Billion through its global payment gateway globally. Verifone also assists you in generating reports for data-driven decision-making.
Features of Verifone
- Verifone’s device management feature enables you to monitor and manage all your payment devices using one dashboard.
- Its device diagnostics feature will alert you through notification whenever any suspicious activity is detected.
- This Shopify payment gateway provides a high-speed and connected platform that unifies all your payment channels.
- It ensures safe payments with encrypted platforms, bank-grade security, and PCI compliance.
Pricing of Verifone: Verifone offers 3 paid plans, 2SELL, 2SUBSCRIBE, 2MONETIZE that charge 3.5% + ₹26.59, 4.5% + ₹34.19, and 6.0% + ₹45.58 per successful transaction respectively.
Country Wise Popularity of Verifone: Europe, Austria, Denmark, United Kingdom
Klarna, Shopify payment provider is considered a market leader in the category of ‘Buy Now, Pay Later’ services. Along with offering a set of modern payment methods, Klarna ensures smooth checkout focuses on enhancing the customer’s shopping experience.
Features of Klarna
- Klarna offers complete 360-degree support with dedicated marketing, product, and analytics team.
- This gateway provides seamless and smooth payment checkout options to enhance your customer’s shopping experience.
- It offers a scalable payment gateway that meets both global and local compliance standards.
- It allows your customers to pay in installments as well.
Pricing of Klarna: Pricing available on request at the official website.
Country Wise Popularity of Klarna: Australia, Canada, United Kingdom, USA
Square allows you to receive payments from your online as well as offline stores. Being PCI compliant, Square payment provider offers robust dispute management and fraud prevention.
It also offers a complete suite of business solutions that can manage orders, teams, inventory, product catalog, etc., using API.
Features of Square
- Square allows you to share payment links on texts, or emails.
- The payment method charges no fees for chargebacks or refunds.
- Customers have the convenience of paying through Google Pay, Apple Pay, or any other Cash App Pay.
- It provides you with insights related to fraud patterns and alerts that help you in managing risks.
Pricing of Square: Square charges a fee of 2.9% + ₹2, 279.87 on card payments or 1% with a minimum of ₹76 per transaction on the invoice for ACH bank transfers.
Country Wise Popularity of Square: USA, Canada, Japan, Australia
Braintree which was acquired by PayPal in 2013, offers you a blend of innovation, experience, and scalability. The PayPal network of 130+ currencies and 45+ countries allows you to expand and tap onto newer markets. Braintree’s modern payments experience helps you boost your sales and boost your conversion rates.
Features of Braintree
- Braintree ensures that your payment data remains secure.
- With Braintree you can accept global payments through PayPal, cards, and Venmo (only in US).
- It keeps your transactions safe with 3D Secure 2 factor authentication.
- With Braintree, your customer’s data is safe due to its ‘no prohibited data storage’ policy.
Pricing of Braintree: Braintree charges a percentage of 2.59% and ₹37.23 per transaction for digital wallets and card payments.
Country Wise Popularity of Braintree: Canada, USA, Singapore, China
Suggested Read: List of Best International Payment Gateways in India
Adyen offers end-to-end payment solutions and helps you in the financial management of your business. In addition, it enables you to receive global payments and increase your customer base while expanding your business.
Features of Adyen
- Adyen allows you to manage and respond to frauds without harming your real business transactions.
- This Shopify payment provider enables you to manage your payments across online and offline stores.
- With this Shopify payment app, you tend to make more insightful decisions with the power of machine learning.
Pricing of Adyen: Adyen charges a processing fee of ₹8.29 per transaction with different payment method charges for different mediums.
Country Wise Popularity of Adyen: USA, Brazil, Australia, Canada
PayFast, a Shopify payment gateway, enables you to accept and manage your financial transactions directly from your dashboard. The dashboard allows you to view your recent transactions, account balance, request payments, and generate reports. With PayFast, you can request payments with an email link, even if you don’t have an eCommerce website.
Features of PayFast
- Integrate this Shopify payment provider with your shopping cart in just a few minutes.
- Its tokenization feature allows you to accept recurring payments in just a single click without the need for authorization.
- This payment gateway provider makes your subscriptions easy, with automated and regularly scheduled payments.
Pricing of PayFast: PayFast charges different fees for different payment methods ranging from 2% to 5.5%.
Country Wise Popularity of PayFast: South Africa
PayGate can be integrated into your business at any stage. The payment gateway allows you to accept international payments using cards, Master pass, Zapper, etc.
To keep your transaction secure, this payment gateway is PCI DSS Level1 Compliant, GDPR Ready, and fraud monitoring for suspicious transactions.
Features of PayGate
- PayGate is a flexible payment solution as it makes a month-to-month contract.
- With this payment gateway, settlements are made in real-time.
- It also offers funding solutions to grow your business.
- The payment provider allows you to create a recurring or subscription-based payment model for your customers.
Pricing of PayGate: It offers two plans, Switch and Plus. PayGate Switch charges a base fee of 0.25%, and PayGate Plus charges 3.5% for every successful transaction.
Country Wise Popularity of PayGate: South Africa, Australia, Ireland, New Zealand, Saudi Arabia
You have multiple Shopify payment gateways option available out there. But before selecting one, be aware of your geographical target market to select the most suitable for your nature of business. Also, we highly recommend going through their security licenses and some reviews as well.
- Which payment gateway is best for Shopify?
The best payment gateways for Shopify are PayPal, Shopify Payments, Stripe, and Skrill because of their massive global presence.
- Is it possible to use a different payment gateway on Shopify?
Yes, it is possible for you to integrate a third-party payment gateway on Shopify. You can check some options like Verifone, AmazonPay, WorldPay that offer smooth and quick integration.
- Is Shopify a payment gateway?
Yes, Shopify offers its in-built payment method, Shopify Payments. You add it to your business with a simple setup, and a transaction cost.
- How to add a payment gateway to Shopify?
To add a payment gateway to Shopify, follow the steps below:
1. Go to ‘Payment Providers’ in your Shopify ‘Settings’.
2. Tap on ‘Accept Payments’ and then click ‘Add a Provider’.
3. Now, enable the option and hit ‘Continue’.
4. Click on ‘Complete Account Setup’.
5. Next, you will be navigated to an online, here enter all the relevant information, and finally click on ‘Complete Account Setup’.
- What payment provider is supported by Shopify?
Shopify supports an in-built payment provider – Shopify Payments. It also integrates with multiple third-party providers like AmazonPay, Klarna, Square, etc.
- Is Shopify payment free?
Shopify Payments platform is free as it doesn’t charge any transaction fee. However, any other third-party Shopify payment provider will charge a percentage on your successful transaction.